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TUESDAY, FEBRUARY 27, 2018

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Aliv: ‘Massive firepower’ from $50m capital raise

BTC workers ‘not quaking in boots’ on 15% decline

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

liv yesterday said it had gained “massive firepower” from its $50 million-plus capital raise, which will likely accelerate its growth and “retool” the company’s balance sheet. Damian Blackburn, the mobile operator’s top executive, told Tribune Business that it had been provided with “fantastic options” by a preference share issue that was more than three times’ oversubscribed by Bahamian investors. The offering closed on Friday at “just over” $50 million, having initially targeted just $15 million, and Mr Blackburn said it would allow Aliv to “complete the job” on its nationwide network roll-out, potentially bring forward the timeline to achieve profitability, and restructure its balance sheet with the “best” mix of financing.

* ‘Fantastic options’ from 3x oversubscribe * Able to ‘grow faster’, reduce time to profit * $20m spent to acquire 100,000 subscribers * Roll-out ‘bogged down’ over BTC issues “It’s likely to close at somewhere above $50 million,” the Aliv chief said of the capital raising. “That gives us massive firepower for two things. One is we could choose to grow even faster, which brings forward the P&L (profit and loss), the customer growth rate, and/or we can retool our balance sheet by refinancing the vendor financing or a portion of the vendor financing. “We also could have the option to put secure bank financing in. “That’s another option we’re looking at. We have an agreement in principle we can execute against. We’ll be deciding whether we do it.”

DAMIAN BLACKBURN Aliv’s preference share private placement memorandum (PPM) disclosed that the mobile operator was in talks with “a major international bank”, likely to be one of the Bahamas’

Canadian-owned institutions, for a $19.5 million credit line. Disclosure of that facility, which would have a five-year term and involve quarterly repayments of $609,375, prompted concerns that the preference shareholders could be disadvantaged if Aliv failed to meet its performance targets and placed its banking covenants under pressure. Mr Blackburn, though, said the preference share issue’s outcome, and the bank’s willingness to provide debt financing, were effectively expressions of confidence in the second mobile operator’s

SEE PAGE 4

BAHAMAS Telecommunications Company (BTC) staff are “not quaking in our boots” over last year’s near-15 per cent revenue decline, a union leader said yesterday. Bernard Evans, the Bahamas Communications and Public Officers Union’s (BCPOU) president, told Tribune Business that his members - and BTC staff generally - knew the company’s years of $300 million-plus revenues were “long gone” with the arrival of mobile competition. He revealed that the BCPOU, which represents BTC’s line staff, had been warned to expect a drop of around $100 million in the company’s annual topline as a result of losing at least 30-35 per cent mobile market share to Aliv. Describing the union as “alarmed but not surprised” by the slippage, Mr Evans

* REVENUE DOWN TO $261M; 17% Q4 FALL * UNION CHIEF: $300M-PLUS DAYS ‘LONG GONE’ * ‘LACK OF VISION’ ON INFRASTRUCTURE UPGRADE said he was a “bit disappointed” by the “lack of vision” displayed by BTC and its immediate parent, Cable & Wireless Communications (CWC), when it came to readying the company for competition. He suggested that key infrastructure upgrades had been initiated too late, meaning that BTC now faces an uphill effort to compensate for the reduced mobile revenue by making inroads into Cable Bahamas’ dominance of the TV/ video and Internet markets.

SEE PAGE 6

Central Bank reforms to Aliv unveils aggressive lower ‘finance exclusion’ margin driving strategy By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Central Bank is aiming to reduce “financial exclusion” and unregulated financial activities by easing the ‘residential address’ requirement for opening bank accounts. The regulator, in unveiling proposed changes to the Financial Transactions Reporting Act and its accompanying regulations, acknowledged that the legal requirement for financial institutions to obtain

* TO EASE ‘RESIDENTIAL ADDRESS’ KYC DEMAND * BANKS RISK AVERSE ON FEAR OF ‘COMPLIANCE FAILURE’ * BAHAMAS LACKS NATIONAL ‘IDENTITY DATABASE’ client home addresses was “ill-suited to the Bahamas’ domestic realities”. And, in the absence of a developed ‘identity infrastructure’ in the Bahamas, the Central Bank said banks and others were unable to implement Know Your Customer (KYC) standards in the same way as industrialised countries can. With financial institutions having difficulty in

obtaining customer verification documents required by law, the Central Bank said “the cost of compliance failure is so great that banks have applied the rules in a prescriptive and risk averse manner”. Its consultation paper thus proposes reforms that allow the Bahamas to implement a customer

SEE PAGE 11

SKY RESOLVES CAT ISLAND AIRLIFT FEARS By NATARIO MCKENZIE Tribune Business Reporter nmckenzie@tribunemedia.net SKY Bahamas chief executive yesterday pledged the airline’s commitment to Cat Island after resolving service frequency issues that had caused concern among the island’s tourism industry. Speaking with Tribune Business, Captain Randy Butler said those concerns were sparked after Sky Bahamas altered its frequencies, having determined that its daily “triangular” service between Nassau, New Bight and Arthur’s Town was not making “business sense”. “It’s very expensive to fly from one of those airports to the next. It’s like coming back to Nassau,” he explained. “In the seven years flying to Cat Island we have been a part of that island’s bread and butter, carrying food stuffs, cargo and medicine, and we did some of that gratis. “In terms of festivals, homecoming we were sponsoring those things with cash and kind. Other airlines may come in for a day or two when there is a festival, but we have been consistently building that business. “Most complaints we have had have been in the last few months because we

decided to change frequencies a bit, and there have been people with other agendas saying things. We are trying to do the best that we can.” The Bahamas Out Island Promotion Board’s (BOIPB) executive director, Kerry Fountain,

acknowledged that tourism stakeholders on Cat Island had expressed serious concerns over airlift during the past several months relating to schedule changes. “A resolution was brought about on Friday,

SEE PAGE 11

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net ALIV yesterday said it was aggressively targeting higher-spending consumers to recover lost ground on margin targets, its launch having sparked a corporate market expansion. Damian Blackburn, the mobile operator’s top executive, told Tribune Business that while it had likely captured 30 per cent of the existing corporate market upon entry, its presence was estimated to have grown the segment by another 5,000 subscribers. Making further inroads into this category - and other high-spending

* SAYS CAPTURED 30% OF CORPORATE * MARKET ‘CHALLENGES’ HIT PROJECTIONS * NEW PRODUCTS IMPACT HIGHER END markets - is key as Aliv seeks to make up for being around “eight months” behind forecast on its margins due to lowerthan-expected revenue per customer (ARPU). Mr Blackburn yesterday reiterated that Aliv was behind target due to factors beyond its control, including the later-than-expected launch of mobile number portability and delays in its main rival, the Bahamas Telecommunications Company (BTC), facilitating its network infrastructure

roll-out (see other articles on Page 1B). He explained that number portability, which allows subscribers to keep their existing number when switching provider from BTC to Aliv, or vice versa, had been vital to the operator’s plan to penetrate the high-value Bahamian market because businessmen and such consumers wanted to retain their present contact. But number portability, which was

SEE PAGE 5

THE TRIBUNE

Tuesday, February 27, 2018, PAGE 3

How to keep the sun shining on your finances By Ramon Simms

WE in the Caribbean usually enjoy good weather. The sun is shining, the rain never lasts for long and, if you head over to the beach, you can catch a cool ocean breeze. Despite this tropical backdrop, the Bahamas is no stranger to natural disasters. Every year, from June through November, we have to contend with the destructive force of hurricanes. The Bahamas has been relatively lucky as a nation, but we have not been left unscathed. While Hurricane Matthew serves as the most recent reminder, 1992’s Hurricane Andrew still ranks as one of the top 10 most expensive natural disasters in this region. One of the first measures in disaster and financial planning is safeguarding documents. Independent of the chaos surrounding a natural disaster, this is just good housekeeping. Think about how often you have looked for paperwork. Important documents that need protection include birth and marriage certificates; mortgage deeds; legal wills; bank records; car titles; and insurance policies. You will likely need some of these records in the event of an emergency. A safety deposit box at a bank branch is a great solution, because it allows you to take advantage of your bank’s commercial infrastructure. Alternatives include keeping a waterproof, locked box in a secure space, or trusting an off-island family member or friend with physical

copies of your records. Digital copies are also a great option. Take advantage of modern technology by scanning records and e-mailing them to yourself, or saving them to an online storage account. The most important disaster mitigation measure you can take is protecting your property. Making modifications to your home, or requesting that of your landlord, is the most direct action within your control. Consider adding commercially-manufactured hurricane shutters or having panels made from plywood boards fitted. Large trees should be planted 20 feet or more away from the house. If this is no longer possible, one secondary option is to clear branches and remove tree debris prior to the storm. Stockpile bags of sand and use them to construct barriers around high-risk areas of your home to protect against flooding. Another strategy is to elevate indoor items that might be vulnerable to water damage (like a refrigerator or washing machine). Having home, renters, life or auto insurance is another highly effective mitigation tactic. Review your insurance policies and question your agent. Repairing the damage from a natural disaster can be costly. Make sure you know which, if any, natural disasters qualify. If your property insurance does not cover hurricanes or floods, consider switching to a carrier that does or adding supplemental coverage to your

MONEY

MATTERS existing policy. If you are covered, take some time to understand the claims process and your coverage umbrella. Know how much of your home’s value your insurance company will cover. If you rent a home, note that your property is typically not covered under a landlord’s policy. Consider purchasing renters’ insurance. Create an itemised inventory of your possessions (to be kept with your other documents), and understand what your policy will replace and what it excludes. Update the beneficiary on your life insurance policy, and consider adjusting the benefit payout upwards to account for the unfortunate fact that death and natural disasters are highly correlated. Beyond the physical and emotional dangers victims have to contend with, financial well-being can also be ruined by a natural disaster. Following all

these steps can protect you from situations where the cost of recovering from a natural disaster can cause undue financial stress. This stress can result in direct costs in the form of covering repair fees or replacing damaged assets. There are also indirect costs in the form of delays to the filing of insurance claims due to missing or incomplete records, lack of access to cash or bank accounts because of lost information, or the extra burden of financial responsibility from the death of a partner. In these types of emergency situations time is of the essence, and insurance proves a worthy investment. Preparing in advance reduces the financial impact of information loss, property damage, personal injuries and, God forbid, loss of life. Do not wait for a warning from your meteorologist. Prepare your own peace of mind well before the storm. NB: Ramon Simms is a management professional with over 10 years’ experience in finance, operations and technology. He holds a BA in Financial Economics and an MBA in Entrepreneurship. He is a managing director at IFF Ltd (www. iffpros.com), and you can reach him at ramon@iffpros.com

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NOTICE

Carven Evans and Brent Knowles Please contact Pinder’s Customs Brokerage Ltd.

regarding your former employment.

Call Shannon Pinder at 393-3795

PAGE 4, Tuesday, February 27, 2018

THE TRIBUNE

Aliv: ‘Massive firepower’ from $50m capital raise FROM PAGE 1 ability to hit its financial goals. He added that Aliv’s Board, controlled by Cable Bahamas but also featuring directors representing the Government-owned HoldingCo Ltd, will now have to determine the best use for the $50 million preference share capital. “The Board of Aliv will have to decide, based on what we raised on the preference shares, the option of bank financing from a major

bank; what the correct balance is for financing on the balance sheet; and how much we put into growing the base,” Mr Blackburn explained. “We have the firepower we need.” Among the potential uses for the preference share capital is paying out all, or part, of the $40 million vendor financing Aliv has received from its equipment supplier, Huawei. It can also choose not to use the bank credit facility if this proves less than optimal to its financing mix.

NOTICE MIN CHUAN INVESTMENTS LIMITED N O T I C E IS HEREBY GIVEN as follows: (a) MIN CHUAN INVESTMENTS LIMITED is in voluntary dissolution under the provisions of Section 138 (4) of the International Business Companies Act 2000. (b) The dissolution of the said company commenced on the 15th February, 2018 when the Articles of Dissolution were submitted to and registered by the Registrar General. (c) The Liquidator of the said company is Bukit Merah Limited, The Bahamas Financial Centre, Shirley & Charlotte Streets, P.O. Box N-3023, Nassau, Bahamas Dated this 27th day of February, A. D. 2018 _________________________________ Bukit Merah Limited Liquidator

It could also shorten the time the second mobile operator, the Bahamas Telecommunications Company’s (BTC) first competitor, requires to become profitable. Aliv’s current projections forecast that it will start turning an operating profit in its 2019 financial year, improving from a $28 million loss this current year to a positive $5 million for the 12 months to end-June 2019. Mr Blackburn yesterday revealed that Aliv has invested $20 million to-date in acquiring customers, equating to a $200 cost for each of its 100,000 subscribers. He added that Aliv was enjoying a “six-month payback” on this cost based on current revenue per subscriber figures, which was “in line with the industry average”. Aliv’s top executive also disclosed that the operator has invested $170 million in capital spending to-date, including the $60 millionplus licence fee paid by Cable Bahamas. He added that another $10 million is required to complete the company’s network infrastructure roll-out and “pay of bills backed up from capital expenditure”. Of Aliv’s planned 235 mobile sites, nearly 65 per cent or 150 have been built by itself or Cable Bahamas, its BISX-listed controlling shareholder. Some 179 of its towers are

located on New Providence, Grand Bahama, Eleuthera, Abaco, Exuma and Bimini - all islands where it has launched services since starting operations some 15 months ago. Mr Blackburn said Aliv has installed its network equipment at 38 “additional sites” on islands such as Cat Island, Long Island, San Salvador, Rum Cay and the Berry Islands, and is now waiting for BTC to “hook them up” under the terms of their facilities sharing and subsea cable transmission agreements. “We’re literally waiting for BTC to hook up subsea transmission,” he told Tribune Business of Aliv’s efforts to penetrate the southern Bahamas. “We’ve had an agreement in principle with BTC for a few months on subsea transmission, starting with Long Island.” Mr Blackburn said the 38 sites with Aliv equipment should be operational by Easter, but he emphasised that this depends on BTC. The speed with which Aliv rolls-out its infrastructure, especially in the southern Bahamas, and its ability to meet the milestones set by its licence and regulators is heavily linked to the cooperation it receives from its main competitor. This is because the Utilities Regulation and Competition Authority (URCA), together with

the Ministry of Works, are mandating that Aliv and BTC co-locate their network facilities at one location where feasible so as to minimise the environmental and spread of tall cellular towers. Aliv also had to secure an agreement with BTC to carry its customers’ voice and data traffic on its subsea cable infrastructure in the southern Bahamas, and the new entrant has blamed “significant delays” in both areas for impacting the speed with which it can deliver services. “As a direct result of very material delays in the installation and provisioning of services on these BTC dependencies, the actual launch of the Family Island networks was significantly delayed,” Aliv’s preference share offering document warned investors. “Despite the delays, which are being addressed by URCA, Aliv has proceeded and completed the non-dependent areas, and is ready to launch once the BTC requirements are met.” Mr Blackburn yesterday told Tribune Business that these issues had “bogged down” Aliv’s roll-out last year, but expressed confidence that the challenges were being overcome - especially on the co-location with BTC. “Our roll-out, while we did fantastic in the

beginning, with record speed in the islands where we had Cable Bahamas fibre optic infrastructure and prepared sites, got bogged down a bit in 2017,” he confirmed. “One of the issues is working through the process of sites we need to use from BTC because of the [co-location] regulations. We got a bit bogged down with that. “We had to sign an agreement with BTC, and signed a co-location agreement with them in April. “Bimini launched in August, Andros on December 1, and we just launched in Exuma last week. Those are major achievements by BTC engineers, who supervised the putting in of equipment at their sites. Generally in those islands, but not exclusively, we’re using BTC infrastructure,” Mr Blackburn continued. “We just need BTC’s transmission engineers to catch up and implement the subsea deal that was agreed, plus on-island transmission.” Mr Blackburn said Aliv also has to complete 18 sites on Ragged Island and in the MICAL constituency before end-June 2018 to meet its licence and regulatory roll-out targets. He visited Ragged Island on Tuesday, together with the operator’s chief technology officer, as part of this process.

NOTICE

NOVEL WISDOM LIMITED

HAPPY JOY LIMITED

SPRING 23 LIMITED

N O T I C E IS HEREBY GIVEN as follows:

(a) NOVEL WISDOM LIMITED is in voluntary dissolution under the provisions of Section 138 (4) of the International Business Companies Act 2000.

(a) HAPPY JOY LIMITED is in voluntary dissolution under the provisions of Section 138 (4) of the International Business Companies Act 2000.

(a) SPRING 23 LIMITED is in voluntary dissolution under the provisions of Section 138 (4) of the International Business Companies Act 2000.

(b) The dissolution of the said company commenced on the 15th February, 2018 when the Articles of Dissolution were submitted to and registered by the Registrar General.

(c) The Liquidator of the said company is Bukit Merah Limited, The Bahamas Financial Centre, Shirley & Charlotte Streets, P.O. Box N-3023, Nassau, Bahamas

Dated this 27th day of February, A. D. 2018

_________________________________ Bukit Merah Limited Liquidator

NOTICE

LIGHT WATER GROUP LIMITED

NEOSUN HOLDINGS LIMITED

ALTIVO INVESTMENTS LIMITED

N O T I C E IS HEREBY GIVEN as follows:

(a) LIGHT WATER GROUP LIMITED is in voluntary dissolution under the provisions of Section 138 (4) of the International Business Companies Act 2000.

(a) NEOSUN HOLDINGS LIMITED is in voluntary dissolution under the provisions of Section 138 (4) of the International Business Companies Act 2000.

(a) ALTIVO INVESTMENTS LIMITED is in voluntary dissolution under the provisions of Section 138 (4) of the International Business Companies Act 2000.

(b) The dissolution of the said company commenced on the 15th February, 2018 when the Articles of Dissolution were submitted to and registered by the Registrar General.

(b) The dissolution of the said company commenced on the 20th February, 2018 when the Articles of Dissolution were submitted to and registered by the Registrar General.

(c) The Liquidator of the said company is Bukit Merah Limited, The Bahamas Financial Centre, Shirley & Charlotte Streets, P.O. Box N-3023, Nassau, Bahamas

Dated this 27th day of February, A. D. 2018

_________________________________ Bukit Merah Limited Liquidator

NOTICE

ARTENITA LIMITED

TRULY LIMITED

OSMIUM LIMITED

N O T I C E IS HEREBY GIVEN as follows:

(a) ARTENITA LIMITED is in voluntary dissolution under the provisions of Section 138 (4) of the International Business Companies Act 2000.

(a) TRULY LIMITED is in voluntary dissolution under the provisions of Section 138 (4) of the International Business Companies Act 2000.

(a) OSMIUM LIMITED is in voluntary dissolution under the provisions of Section 138 (4) of the International Business Companies Act 2000.

(b) The dissolution of the said company commenced on the 21st February, 2018 when the Articles of Dissolution were submitted to and registered by the Registrar General.

(b) The dissolution of the said company commenced on the 15th February, 2018 when the Articles of Dissolution were submitted to and registered by the Registrar General.

(b) The dissolution of the said company commenced on the 21st February, 2018 when the Articles of Dissolution were submitted to and registered by the Registrar General.

(c) The Liquidator of the said company is Leeward Nominees Limited, Akara Building, 24 de Castro Street, Wickhams Cay 1, Road Town, Tortola, British Virgin Islands.

Dated this 27th day of February, A. D. 2018

-Dated this 27th day of February, A. D. 2018

Dated this 27th day of February, A. D. 2018

_________________________________ Leeward Nominees Limited Liquidator

THE TRIBUNE

Tuesday, February 27, 2018, PAGE 5

Aliv unveils aggressive margin driving strategy FROM PAGE 1 supposed to launch within six months of Aliv’s end-June 2016 licence issue, was only launched in late April 2017 - some four months later. And the system suffered numerous problems that delayed ‘ports’ and undermined the customer experience, which have only just been worked out. “The easy answer to that is we were restricted from certain segments,” Mr Blackburn said of the ARPU target miss. “It’s normal for early adopters to be lower spending customers. The restrictions are falling away, and what happens is we get the higher spending ones to come when they feel more comfortable that these restrictions are lifted, so the market is opening up. “In terms of the challenges we’ve had to overcome...., number portability was meant to arrive within six months of the licence. It actually came at the end of April, which ended up being 10 months, give or take a day or two. “There’s always education for the market, and there was a period where the number porting worked but not as smoothly as it could according to the rules. I think that’s behind us now and is breeding confidence in the system. Thanks to co-operation between ourselves and BTC, the system has got a lot smoother in recent weeks. It works as it should,” the Aliv chief continued. “That undoubtedly restricted the market for certain types of customers. Those who want to move

with their numbers are the higher spending customers and corporate. They won’t move unless they retain their numbers.” Mr Blackburn said mobile number portability’s (MNP) delayed launch meant that despite Aliv unveiling its corporate services in February 2017, it had to wait two months until April/May before it could properly target this segment. And its ability to win corporate clients, who are typically post-paid, was further impacted by the wait for their contracts with BTC to end. Aliv estimates it now has around 30 per cent of the corporate mobile market that existed prior to its launch, while believe that it has helped to grow the segment. “We’ve got over 5,000 lines on business,” Mr Blackburn told Tribune Business. “It looks like 30 per cent from the beginning, but there’s more to go. I don’t know the exact split, but I expect 60-70 per cent of those ported their numbers. “I think that market’s growing. I wouldn’t like to completely size it, but I think it’s between 15,000 to 20,000. A lot of people didn’t have that product and should have, and we’re converting them.” In total, Mr Blackburn said some 26,000 out of over 100,000 Aliv subscribers have ‘ported’ their number from BTC to-date, with 60 per cent of the latter using the carrier’s Freedom and Liberty plans. Pegging Aliv’s share of the ‘higher spending’ customers at between 15-20 per cent, the Aliv chief said the new mobile operator had used that existing base

to obtain an understanding of its product and service needs. He unveiled Aliv’s strategy to better penetrate this segment, and drive ARPU margins, aiming to build on what the operator perceives as greater confidence, comfort and trust in its network quality and reliability. Mr Blackburn pointed to last week’s ‘Apple for Life’ launch as a key element in this strategy. The initiative, targeted at the Bahamian affinity for Apple products, enables consumers to obtain any one of the iPhone X, iPhone 8 or iPhone 8+ with a downpayment starting at $499. Monthly plan payments begin at $125, more than double the $49 revenue per subscriber that Aliv is targeting for its 2019 financial year. Consumers can also obtain up to $400 by trading in their existing phone, with the initiative essentially a ‘rolling contract’ that enables them to upgrade to the latest Apple product within 12 months. “For Apple junkies who like upgrading all the time, this is perfect,” Mr Blackburn added. Johnny Ingle, Aliv’s chief ‘champion’ (marketing officer), said 200 persons registered for ‘Apple for Life’ on the day it launched, with that figure having now grown to 600. Those who register will be catered to by the operator’s ‘concierge service’, which will visit them at home or work at a time of their choosing. Aliv believes it will also make inroads into higher spending consumers through its Aliv Go and Aliv Soho product launch in February. For $75 per month, customers gain unlimited Internet access

for up to five and 15 users, respectively, via handheld, wireless modem devices. Mr Ingle explained that it was targeted at second home owners in the Family Islands, especially those who liked to be on their boats and have Internet connectivity. “There’s a hugely lucrative market that spends three to six months in the Bahamas, but not necessarily in New Providence and Grand Bahama,” he told Tribune Business. “We’ve recognised that market. We have exceeded our targets for launch on both solutions.” Mr Blackburn added that Aliv Go and Aliv Soho could also help fill in Family Island ‘coverage gaps’ left by Cable Bahamas and BTC’s fixed Internet infrastructure. “There are places beyond their networks,” he explained. “They’ve struggled for years to get reliable Internet and this is a good option; parts of Abaco, Eleuthera, Exuma, Grand Bahama and Bimini. We’re finding great demand for this product. In New Providence and Grand Bahama, people beyond the fixed networks need resilience or in some areas, for one reason or another, it’s not been great service.” With Aliv now targeting specific market segments, Mr Ingle said the company’s ‘net provider score’ - measuring how likely Bahamians were to recommend the company and its products to someone else - had increased from an initial ‘58’ to ‘68’. He added that Aliv was now increasingly being

recommended to “higher ARPU subscribers”, and added: “The word of mouth has kicked in.” Aliv’s ARPU is projected to grow from $36 per subscriber to $52 between end-March 2018 and endJune 2019, a rise of 44.4 per cent. This will help drive gross margins from

48 per cent to 70 per cent. With quarterly operating expenses held constant at $12-$13 million, earnings before interest, taxation, depreciation and amortisation (EBITDA) are forecast to move ‘into the black’ during the quarter ended on December 31, 2018.

PAGE 6, Tuesday, February 27, 2018

THE TRIBUNE

BTC workers ‘not quaking in boots’ on 15% decline FROM PAGE 1

Mr Evans was speaking after data obtained by Tribune Business from CWC’s owner, Liberty Latin America (LiLAC), showed that BTC’s revenue decline actually accelerated in the 2017 fourth quarter as Aliv seized more mobile market share. BTC’s revenues for the three months to endDecember 2017 fell by 17.2 per cent, from $72.8 million in 2016 to $60.3 million. For the full year, the first when it had a mobile competitor, total revenues were off by 14.8 per cent, dropping from $306.6 million to $261.3 million - a more than $45 million decline. CWC/LiLAC only broke out the revenue numbers, so the impact on BTC’s margins, operating income and profitability was not revealed. However, revenue declines of such magnitude suggest the ‘bottom line’

had to be squeezed in 2017 - a trend that will likely continue. “To be honest with you, we are very concerned about it but not overly concerned,” Mr Evans told Tribune Business of BTC’s figures. “Back in 2012 we were told the new [mobile] entrant would take between 30-35 per cent of the market. It was anticipated. “BTC was told to get its house in order for the entrance of a new competitor. It had four years to get its house in order. What we’re a bit disappointed with is that BTC could have improved its infrastructure, but unfortunately the vision was lacking up until this point. “This is what has been the concern, the infrastructure could have been better, more robust, so we could take up other Flow [CWC] products, TV and Internet. We’re hopeful BTC will be able to come back and its Flow products offset

and bring in new revenue streams.” Mr Evans said BTC had only recently begun to invest “aggressively” in improving its network infrastructure by rolling out ‘fibre-to-the-home’, enabling it to offer consumers product ‘bundles’ featuring TV, Internet and phone communications. However, figures produced by LiLAC show that to-date the company has struggled to dent Cable Bahamas’ market share in the TV/video and Internet market - the segments the BISX-listed institution dominates. While video (TV) subscribers almost quadrupled from 1,600 to 6,200 yearover-year, BTC has a long way to travel before it can go head-to-head with Cable Bahamas. And its Internet subscriber numbers rose by just 200 year-over-year, from 26,400 to 26,600,. “This is predominantly because of the

infrastructure we have out there,” Mr Evans said of the slow penetration rates. “It’s too predominantly copper. They’re rolling out these nodes and changing them to fibre. “Capital expenditure is very aggressive, and by summer you will see a marked improvement in penetration. Given the investment in infrastructure, it bodes well for the second half of this year into next. “The company is seeking to go aggressively above 30-40 Megabytes for bandwidth so it can make inroads into the TV market. It allows BTC to broaden its shoulders. “Flow products, where they work, are said to be better than Cable Bahamas,” he continued, “It’s all about bandwidth. We know this is where the market is going and trending. Long gone are the days when BTC made $300 million-plus in revenue.”

NOTICE

NOTICE is hereby given that LEVANIA SAINT-VIL DORCELY of Caspian Rd. East off Soldier Rd., New Providence, Bahamas is applying to the Minister responsible for Nationality and Citizenship, for registration/naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 27th day of February, 2018 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, Bahamas.

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NOTICE

NOTICE is hereby given that HARRY JOSEPH of #16 Kiki St. and Farrington Rd., New Providence, Bahamas is applying to the Minister responsible for Nationality and Citizenship, for registration/ naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 27th day of February, 2018 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, Bahamas.

MARKET REPORT

AMCA Insurance and Reinsurance Company Limited SAC NOTICE is hereby given that in accordance with Section 138(8) of The International Business Companies Act, 2000, the Dissolution of AMCA Insurance and Reinsurance Company Limited SAC has been completed, a Certificate of Dissolution has been issued and the Company has therefore been struck off the Register. The date of completion of the dissolution was the 28th day of December A.D., 2017.

t. 242.323.2330 | f. 242.323.2320 | www.bisxbahamas.com

BISX ALL SHARE INDEX: CLOSE 2,050.92 | CHG 0.02 | %CHG 0.00 | YTD -12.65 | YTD% -0.61

Michael C. Miller Liquidator

BISX LISTED & TRADED SECURITIES 52WK HI 4.38 19.17 9.09 3.76 1.64 0.18 4.60 8.70 6.30 5.30 11.87 2.59 1.56 9.70 6.10 10.55 10.90 4.50 12.51 11.00

52WK LOW 3.50 17.43 8.19 3.32 0.90 0.12 3.50 8.40 5.83 3.15 9.00 2.18 1.40 7.75 5.83 8.78 5.67 3.35 12.01 10.00

SECURITY AML Foods Limited APD Limited Bahamas Property Fund Bahamas Waste Bank of Bahamas Benchmark Cable Bahamas CIBC FirstCaribbean Bank Colina Holdings Commonwealth Bank Commonwealth Brewery Consolidated Water BDRs Doctor's Hospital Emera Incorporated Famguard Fidelity Bank Finco Focol J. S. Johnson Premier Real Estate

1050.00 1000.00 1000.00 1000.00

1000.00 1000.00 1000.00 1000.00

Cable Bahamas Series 6 Cable Bahamas Series 8 Cable Bahamas Series 9 Cable Bahamas Series 10 Colina Holdings Class A Commonwealth Bank Class Commonwealth Bank Class Commonwealth Bank Class Commonwealth Bank Class Commonwealth Bank Class Commonwealth Bank Class Fidelity Bank Class A Focol Class B

PREFERENCE SHARES

1.00 103.00 100.00 106.00 105.00 103.00 100.00 10.00 1.01

1.00 100.00 100.00 100.00 105.00 100.00 100.00 10.00 1.00

SYMBOL AML APD BPF BWL BOB BBL CAB CIB CHL CBL CBB CWCB DHS EMAB FAM FBB FIN FCL JSJ PRE

E J K L M N

CORPORATE DEBT - (percentage pricing) 52WK HI 100.00 100.00

52WK LOW 100.00 100.00

CAB6 CAB8 CAB9 CAB10 CHLA CBLE CBLJ CBLK CBLL CBLM CBLN FBBA FCLB

SECURITY Fidelity Bank Note 18 (Series E) + Fidelity Bank Note 22 (Series B) +

SYMBOL FBB18 FBB22

Bahamas Note 6.95 (2029) BGS: 2015-1-3Y BGS: 2014-12-5Y BGS: 2015-1-5Y BGS: 2014-12-7Y BGS: 2015-1-7Y BGS: 2014-12-30Y BGS: 2015-1-30Y BGS: 2015-6-3Y BGS: 2015-6-5Y BGS: 2015-6-7Y BGS: 2015-6-30Y BGS: 2015-10-3Y BGS: 2015-10-5Y BGS: 2015-10-7Y

BAH29 BG0203 BG0105 BG0205 BG0107 BG0207 BG0130 BG0230 BG0303 BG0305 BG0307 BG0330 BG0403 BG0405 BG0407

BAHAMAS GOVERNMENT STOCK - (percentage pricing) 115.92 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

104.79 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

MUTUAL FUNDS 52WK HI 2.12 4.14 1.98 178.69 153.40 1.54 1.70 1.62 1.10 6.99 8.54 6.15 10.52 11.46 10.46

52WK LOW 1.67 3.04 1.68 164.74 116.70 1.48 1.62 1.57 1.04 6.41 7.62 5.66 8.65 10.54 9.57

LAST CLOSE 3.90 17.43 9.09 3.34 1.00 0.18 3.60 8.70 6.10 4.74 9.87 2.59 1.50 8.09 6.10 10.10 6.30 4.47 12.51 10.00

CLOSE 3.90 17.43 9.09 3.34 1.00 0.18 3.60 8.70 6.10 4.74 9.87 2.62 1.50 8.08 6.10 10.10 6.30 4.47 12.51 10.00

CHANGE 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.03 0.00 -0.01 0.00 0.00 0.00 0.00 0.00 0.00

1000.00 1000.00 1000.00 1000.00 1.00 100.00 100.00 100.40 100.00 100.00 100.00 10.00 1.00

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

LAST SALE 100.00 100.00

CLOSE 100.00 100.00

CHANGE 0.00 0.00

109.49 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

0.03 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

109.46 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

FUND CFAL Bond Fund CFAL Balanced Fund CFAL Money Market Fund CFAL Global Bond Fund CFAL Global Equity Fund FG Financial Preferred Income Fund FG Financial Growth Fund FG Financial Diversified Fund FG Financial Global USD Bond Fund Royal Fidelity Bahamas Opportunities Fund - Secured Balanced Fund Royal Fidelity Bahamas Opportunities Fund - Targeted Equity Fund Royal Fidelity Bahamas Opportunities Fund - Prime Income Fund Royal Fidelity Int'l Fund - Equities Sub Fund Royal Fidelity Int'l Fund - High Yield Fund Royal Fidelity Int'l Fund - Alternative Strategies Fund

VOLUME

400,100

1,125

VOLUME

NAV 2.12 4.14 1.98 178.69 153.40 1.54 1.69 1.62 1.09 7.16 8.40 6.29 11.28 11.60 10.21

EPS$ 0.475 0.932 -0.508 0.540 -1.220 0.000 -1.462 0.638 0.583 0.171 0.631 0.102 0.330 0.668 1.129 0.729 0.484 0.298 0.543 0.000

DIV$ 0.080 1.130 0.000 0.230 0.000 0.000 0.000 0.320 0.220 0.120 0.690 0.060 0.050 0.141 0.300 0.500 0.150 0.120 0.570 0.000

P/E 8.2 18.7 N/M 6.2 N/M N/M -2.5 13.6 10.5 27.7 15.6 25.7 4.5 12.1 5.4 13.9 13.0 15.0 23.0 0.0

YIELD 2.05% 6.48% 0.00% 6.89% 0.00% 0.00% 0.00% 3.68% 3.61% 2.53% 6.99% 2.29% 3.33% 1.75% 4.92% 4.95% 2.38% 2.68% 4.56% 0.00%

0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000

0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

0.00% 0.00% 0.00% 0.00% 6.25% 6.25% 6.25% 6.25% 6.25% 6.25% 6.25% 7.00% 6.50%

INTEREST 6.00% Prime + 1.75%

MATURITY 31-May-2018 19-Oct-2022

6.95% 4.00% 4.25% 4.25% 4.50% 4.50% 6.25% 6.25% 4.00% 4.25% 4.50% 6.25% 3.50% 3.88% 4.25%

20-Nov-2029 30-Jul-2018 16-Dec-2019 30-Jul-2020 15-Dec-2021 30-Jul-2022 15-Dec-2044 30-Jul-2045 26-Jun-2018 26-Jun-2020 26-Jun-2022 26-Jun-2045 15-Oct-2018 15-Oct-2020 15-Oct-2022

YTD% 12 MTH% 4.00% 4.39% 5.57% 5.69% 2.14% 2.44% 4.66% 3.89% 5.58% 6.65% 0.36% 4.29% -0.15% 3.50% 0.23% 3.89% -0.34% 4.66% -1.08% 1.77% -5.96% -3.05% 1.90% 4.59% 7.24% 11.96% 2.77% 3.88% 3.94% 4.69%

NAV Date 31-Dec-2017 31-Dec-2017 31-Dec-2017 31-Dec-2017 31-Dec-2017 31-Jan-2018 31-Jan-2018 31-Jan-2018 31-Jan-2018 30-Nov-2017 30-Nov-2017 30-Nov-2017 30-Nov-2017 30-Nov-2017 30-Nov-2017

MARKET TERMS BISX ALL SHARE INDEX - 19 Dec 02 = 1,000.00 52wk-Hi - Highest closing price in last 52 weeks 52wk-Low - Lowest closing price in last 52 weeks Previous Close - Previous day's weighted price for daily volume Today's Close - Current day's weighted price for daily volume Change - Change in closing price from day to day Daily Vol. - Number of total shares traded today DIV $ - Dividends per share paid in the last 12 months P/E - Closing price divided by the last 12 month earnings

The BCPOU chief, though, suggested that the subscriber churn was largely complete with “anyone who wants an Aliv phone” already in possession of one. “The peak has already happened,” Mr Evans said, adding that Aliv subscribers were already moving/porting back to BTC. He also suggested that Aliv’s discounts and promotions have “to come to an end soon”, and added: “It’s time now to pay the piper. The chickens have to come home to roost at some point. “Shareholders are going to be saying it’s time to pay up.” Mr Evans also queried whether Aliv was gaining “value for money”, and if it could attract corporate and higher spending customers to generate the higher margins and revenue per subscriber it craves. The BCPOU chief said that while he anticipated no further “forced layoffs” at BTC, the union had successfully ensured the company “keeps on the table” the voluntary separation package (VSEP) that allows workers to depart voluntarily. Mr Evans suggested that workforce “attrition” was likely to continue, with BTC becoming a younger labour force, as persons aged 50 years and over continued to leave the company.

INTERNATIONAL BUSINESS COMPANIES ACT, 2000

NOTICE is hereby given that ISEMENE PETIT-HOME RAYMONVIL of Golden Isle, New Providence, Bahamas is applying to the Minister responsible for Nationality and Citizenship, for registration/ naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 27th day of February, 2018 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, Bahamas.

MONDAY, 26 FEBRUARY 2018

BTC, at the time of the 2011 privatisation when it was still enjoying its mobile monopoly, typically generated around $360 million in annual revenue - a figure that has already dropped some $100 million from its peak. “We’re not shaking in our boots,” Mr Evans told Tribune Business. “We knew this, and educated our members to anticipate this. We’re asking members to work harder, go beyond the call of duty, and focus on customer service. “While we’re alarmed, we’re not surprised. We were told to expect almost a $100 million drop-off because of a number of factors; not only because of competition.” The BCPOU chief said other key BTC revenue streams, such as roaming, texting and mobile calls, had also been squeezed as a result of the increasing tendency of Bahamians to communicate via What’s App and other social media applications. But Mr Evans also questioned whether Aliv would be able to increase its market share beyond its existing 100,000 subscribers, which gives it near 30 per cent. The new entrant’s goal is to gain 47 per cent market share by end-June 2019, and increase this to 50 per cent in subsequent years.

YIELD - last 12 month dividends divided by closing price Bid $ - Buying price of Colina and Fidelity Ask $ - Selling price of Colina and fidelity Last Price - Last traded over-the-counter price Weekly Vol. - Trading volume of the prior week EPS $ - A company's reported earnings per share for the last 12 mths NAV - Net Asset Value N/M - Not Meaningful

TO TRADE CALL: CFAL 242-502-7010 | ROYALFIDELITY 242-356-7764 | FG CAPITAL MARKETS 242-396-4000 | COLONIAL 242-502-7525 | LENO 242-396-3225

Legal Notice

NOTICE STAR CAPITAL FUND ICON NOTICE IS HEREBY GIVEN as follows: (a) (b)

(c)

Star Capital Fund ICON is in dissolution under the provisions of the Investment Condominium Act, 2014. The dissolution of the said investment condominium commenced on the 21st day of February, 2018 when its Notice of Dissolution was submitted to and registered by the Registrar General. The Liquidator of the said investment condominium is Michael C. Miller, #10 Lookout Hill, Winton Heights, P.O. Box EE-17971, Nassau, Bahamas. Michael C. Miller Liquidator

THE TRIBUNE

Tuesday, February 27, 2018, PAGE 11

Central Bank reforms to lower ‘finance exclusion’ FROM PAGE 1

due diligence regime adapted to its onthe-ground realities, with the Central Bank advocating “the menu-based approach” to KYC that Canada has adopted. “The current requirements allow banks to take a risk-based approach to customer due diligence (CDD), but the costs of compliance failure are so great that banks have applied the rules in a prescriptive and risk-averse manner,” the Central Bank said. “It is nearly impossible to open a domestic bank account without at least two forms of identification (ID), one of which is a Bahamian passport. Further, the current emphasis on residential address is ill-suited to the Bahamas’ domestic realities. “There is no residential mail delivery, and street addresses are not used by either financial institutions or the Government to provide critical personal services. Consequently, the residential address verification is a cumbersome

process. By law, [financial institutions] must obtain this information,but it is not the most effective means of contacting customers.” The cost and ‘red tape’ encountered in trying to open a bank account, or conduct financial transactions, has been a frequent complaint of Bahamians ever since the 2000 legal reforms that enabled this nation to escape the Financial Action Task Force’s (FATF) ‘blacklisting’. K P Turnquest, the Deputy Prime Minister, alluded to the “burden of opening a bank account” during last week’s House of Assembly debate on the Financial Transactions Reporting Bill changes, adding that it inhibited the ‘ease of doing business’ in the Bahamas. “At times we seem to be very risk averse, and take the complicated and difficult route to protect against that risk,” he said. “In doing so we inconvenience the general public and demand reams of documents that will not be looked at again till thy kingdom come.”

Mr Turnquest added that the changes were intended to “result in more efficient banking operations”, something the Central Bank’s amendments also seem to be targeting. “The Bahamas also lacks a developed ‘identity infrastructure’ (searchable national databases, unique ID numbers) to implement the Financial Action Task Force’s (FATF’s) CDD standards in the same manner as some G-10 and G-20 counterparts. This is especially true in the Family Islands,” the regulator added. “The inability to open a bank account or access regulated payment services is a form of financial exclusion. When individuals are unable to obtain the reliable independent source documents needed to identify themselves, they rely on informal or unregulated alternatives. They also conduct more transactions in cash. This increases the national risk exposure to money laundering (ML), terrorist financing (TF), and other criminal activities.”

SKY RESOLVES CAT ISLAND AIRLIFT FEARS FROM PAGE 1 which I think is positive for all parties; the seven hotels on Cat island, both north and south, as well as Sky Bahamas,” said Mr Fountain. “Sky Bahamas was servicing both Arthur’s Town and New Bight on a daily basis. The flight would leave Nassau and fly to Arthur’s Town, and then to New Bight and then back to Nassau, or from Nassau to New Bight, on to Arthur’s Town and back to Nassau. They were providing that service twice a day, seven days a week; once in the morning and once in the afternoon. “Due to the wear and tear on the aircraft at Arthur’s Town, they decided to cut the triangle service back to one day a week on Sunday and then service New Bight on Monday, Wednesday and Friday, in the morning and

afternoon, and then service Arthur’s Town on Tuesdays, Thursdays and Saturdays in the morning and afternoon. We provided them some information that showed that the busy check-in and check-out days for Cat Island are Saturday and Sunday.” Mr Fountain added: “They came back and said they would continue to provide the triangle service on Saturdays and Sundays in the morning and afternoon, but would service New Bight only in the morning and afternoon on Mondays, Wednesdays and Fridays. They would also fly into Arthur’s Town in the morning and afternoon on Tuesday and Thursday. “Once we shared that with the hoteliers they were pretty pleased. The only thing they were asking Sky Bahamas to do was put it up on their website and stick to that commitment, because

it puts pressure on the hoteliers when they have to scramble around and try to get guests to Nassau on a last-minute basis.” Captain Butler also told Tribune Business there needs to be greater oversight and management of Family Island airports. “We certainly have some concerns about Arthur’s Town. These airports need to have someone out out there to maintain them, cut the grass, make sure the lights’ clean. It’s getting to the point where you might not be able to fly there soon,” he added. “We are committed to servicing that destination as long as the hotels are committed to supporting us. We do have to make a small increase on ticket prices. The airline is introducing a price increase of $10 one way and $20 round trip for travel to Arthur’s Town and New Bight next month.”

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